A free enterprise system is an economic system based on private ownership of businesses and resources.
What does a free enterprise system look like in practice?It encourages competition and the production of goods and services at prices that are determined primarily by the forces of supply and demand in the market.An example of a free enterprise system is the United States. In the United States, individuals and businesses have the right to freely start and run their own businesses, produce and sell goods and services, and make profits.Businesses must compete with each other to offer the best products and services at the lowest prices. Consumers have the freedom to buy whatever goods and services they want and can afford.The government’s role in this system is limited to protecting the rights of individuals and businesses, regulating certain industries, and providing services that the private sector cannot provide.In the United States, the free enterprise system has helped drive economic growth and prosperity. It has also helped create jobs and given people the opportunity to pursue their dreams and ambitions.To learn more about example of a free enterprise system refer to:
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Why is the US a mixed economy?
The USA is considered a mixed economy because it combines aspects of a market economy, where prices and production of goods and services are determined by supply and demand in a free market.
What is a mixed economy?And a command economy, where the government plays a significant role in directing the economy through regulation and the provision of goods and services, the United States is regarded as having a mixed economy. The USA is considered a mixed economy because it combines aspects of a market economy, where prices and production of goods and services are determined by supply and demand in a free market. These two economic systems work together to make it possible for the US economy to be adaptable and responsive to changes in the market while also offering citizens a safety net and protection through government laws and programs.To learn more about mixed economy from the given link
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Ben started a business on 1 January 2015 using rented premises. At 31 December 2015 Ben owed $1400 for rent. The rent charge to the Income Statement for the year ended 31 December 2015 was $6000. How much was paid for rent during the year?
Answer:
4600
Explanation:
Rent expense is 6000 but he still owed 1400 of that. So he paid 4600 (6000-1400)
An investor purchased a corporate bond for 97 3/8. If the bond is sold for 99 3/8, the investor has a profit of
The investor realized a profit of 1.875 percent of the purchase price of the bond. When an investor buys a corporate bond at 97 3/8 and then sells it at 99 3/8, the investor will make a profit of 1 7/8 points. This translates into a return of 1.875 percent.
The points system is a convenient way to measure the value of bonds and other investments. It allows investors to calculate their profits and losses quickly and easily. The points system is a useful tool for investors to track their investments and evaluate their returns. By factoring in the bond's purchase price and then subtracting the sale price, investors can easily calculate how much they've made or lost on the investment. This makes it easier for investors to decide whether to continue investing in a particular bond or investment.
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What are examples of short medium and long-term goals for savings?
Examples of short, medium, and long-term savings goals include saving for a vacation, buying a house, and contributing to a retirement fund.
Short-term goals involve saving for a purchase or event in the near future, such as a vacation or new furniture. Medium-term goals involve saving up for a larger purchase such as a car, a down payment for a house, or a wedding.
Long-term goals involve saving for retirement, college education, or large purchases that may take years to reach. It is important to set realistic goals and create a plan for saving. Setting up a budget can help you determine how much you can save each month for each of your goals.
Once you have a budget in place, you can decide which goals you want to prioritize in order to reach them faster. You can also set up automated transfers to move money into savings accounts each month to help you reach your goals.
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What is the biggest difference between a market economy and a command economy?
In a command economy, the production factors are owned by the government, and it sets the prices and production schedules. A free market bases price determination on supply and demand.
What role does command economy play?Command economies, in which the government sets prices and output levels, provide several benefits, such as minimal or no unemployment, quick decision-making, equality among citizens, and an emphasis on the worker rather than profits. In a command economy, the government is in charge of the system. A mixed economy is one where the government controls some aspects while a free market economy, which has no government interference and is primarily governed by the law of supply and demand, controls other aspects. A mixed economy allows for private production participation, which in turn promotes healthy competition with the potential for profit. Additionally, it supports public ownership of the manufacturing sector, which can help with social welfare demands.
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TRUE OR FALSE it is important for project managers to understand that every cost estimate is unique.
Answer:
True
Explanation:
It is important for project managers to understand that every cost estimate is unique. Determining the budget involves allocating the project cost estimate to individual work items over time. The project management plan and project funding requirements are inputs of the process of controlling costs.
What are the 4 primary roles of advertising?
Advertising is a powerful marketing tool that can assist you in attracting customers, educating them about your products, and earning their confidence.
Define about roles of Advertising? "Marketing mix" that includes four crucial elements for selling a good or service: product, pricing, place, and promotion. Businesses often consider the four Ps when creating marketing strategies and plans to attract their target audience.Advertising refers to any sponsored marketing of a product, service, or notion with the aim of swaying one or more people. Print, radio, television, and digital media are just a few of the platforms where it could occur. The main goal of advertising is to persuade a person to buy a product or do something else.Advertising aids in spreading awareness of the new product so that customers can visit and try it.To learn more about Types of Advertising refers to:
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Each of the following are generally used to service state general obligation bond issues except A) income taxes. B) real estate taxes. C) motor vehicle license fees. D) sales taxes.
Real estate taxes are not used to service state general obligation bond issues
Municipal bonds issued by the state are backed by state revenue, which includes income and sales taxes as well as fees for licenses and permits issued by the state. Typically, states don't impose real estate or property taxes. Ad valorem taxes, also known as real estate taxes, are primarily imposed by regional governments like cities and counties.
Instead of paying the debt service on state general obligation bond issues, real estate taxes are often utilized to finance local government services and infrastructure including schools, roads, and public safety. Sales taxes, license fees for motor vehicles, and other state-collected levies are some of the common sources of income used to service state general obligation bonds.
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What are the similarities and differences between a market command and mixed market economy?
In a centrally planned economy, the government is in charge of the system. Which is a capitalist model without a government, is governed in part by the authorities and in part as both a free market economy.
An economic system is what?An economy system is a method used by communities or governments to coordinate and distribute resources, resources, and goods throughout a territory or nation.
How does the financial system function?But ultimately, economies function by sharing limited resources among people and things. An economy is made up of a number of capital-facilitated markets where exchange goods and services. These networks are present on a local, a governmental, and a worldwide scale.
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Unfortunately, you only have a few hours after work to do whatever you want this weekend. You would enjoy hanging out with friends at a concert they want to see, but you are not a fan of the band. You enjoy doing well in school and usually enjoy your studies, and so would rather study than go to the concert. There is a movie coming out this weekend that you would prefer to see instead of studying. What are the benefits and opportunity costs of these activities
Having fun, missing movies, achieving higher marks, Having fun and achieving higher grades . Better grades, missing the movie and the concert
Which country has the absolute advantage in producing dates?Therefore, Mali has a clear advantage when it comes to manufacturing dates. The capacity for growing grains per farmer is equal across the two nations. As a result, neither nation has a distinct edge in terms of grain production. The expense of the rejected option is known as the opportunity cost.
You can express electronics prices in terms of food units. The range of electronics costs where trade could benefit both nations is Price must be greater than 2 food units but less than 4 food units. International trade is a decision made by two nations that benefits both of them in the long run. A nation can consume a combination of items that is beyond its original production potential frontier through specialisation and trade.
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to break even, a business must ________.
To break even, a business must generate enough revenue to cover its expenses
This means that the revenue earned from sales or services must be equal to the cost of producing and delivering those goods or services, as well as any overhead costs such as rent, utilities, and employee salaries. When a business is breaking even, it is not making a profit but it is not incurring a loss either. This means that the revenue earned from sales or services must be equal to the total expenses of the business. When a business is breaking even, it is not making a profit but it is also not incurring a loss.
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What are 2 things you should have financially ready before you purchase a home?
There are several financial considerations that you should be prepared for when purchasing a home. Here are two things that you should have financially ready before making a home purchase:
A down payment: A down payment is a payment made in advance as part of the purchase price of a home. Typically, lenders require a down payment of at least 20% of the purchase price of a home, though some programs may allow for lower down payments. It's important to have a down payment saved up before you start looking for a home, as it will be necessary to make an offer on a property.
Closing costs: Closing costs are the fees and expenses associated with buying a home. These can include things like lender fees, title insurance, property taxes, and other costs. It's important to have enough money saved up to cover these costs, which can add up to several thousand dollars or more. You should be prepared to pay these costs at the time of closing, which is when you finalize the purchase of the home.
Emily has not paid her credit card in several months. The creditor is most
likely to respond by:
OA. reducing Emily's interest rate.
B. suspending Emily's credit card.
C. garnishing Emily's wages.
D. repossessing Emily's car.
Answer:B
Explanation: Im jus cool
a power analysis reveals that the study being run has ow power. which method will not result in an increase in statistical power
A power analysis is a computation that determines the minimum sample size needed for an experiment given the necessary statistical power, effect size, and significance level.
What is power analysis?A power analysis is a computation that determines the minimum sample size needed for an experiment given the necessary statistical power, effect size, and significance level. It aids in determining if an experiment or survey result is genuine and noteworthy or the product of chance.
What happens when variance increases?The spread of scores in a data set normally increases as the variance of that data set increases. The main reason for this is because variance is a number that represents the average departure of each data point from the mean. When the variance is considerable, the data points are far off from both the mean and one another. The average of the squared deviations from each point to the mean is the variance. Calculating the variance follows a similar procedure to finding the MAD, or mean absolute deviation.
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Which of the following topics refer to macroeconomics? A. The market for tablets and other portable electronic devices has been steadily growing over the last 5 years. B. Consumer confidence is at an all-time high and the U.S. economy is growing. C. There is a paper towel shortage due to the COVID-19 situation. D. There is an increase in the demand for thermometers. E. There is an increase in the demand for take-out meals
From the following, the one which refers to macroeconomics is that consumer confidence is at an all-time high and also the U.S. economy is growing.
Macroeconomics tends to focus on the performance of the economies. So, the Macroeconomics is considered to be the branch of economics which thus studies the economy as a whole. Thus, the objective of macro economics is in order to maximize the welfare of an economy.
However, here the consumer confidence is at an all-time high which is due to macroeconomics. Macroeconomics tends to study an economy as a whole by mainly focusing on the aggregate measures.
Hence, option B is correct.
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What is 5x in stock?
5x in stock refers to a quantity of the item being sold. For example, if a store has 5x in stock of a certain item, it means that the store has 5 times the amount of that item in stock.
Therefore, if a store has 5x in stock of a certain item, it means that the store has 5 times the amount of that item in stock.
A stock is a type of instrument that denotes the holder's ownership stake in the issuing company and is typically traded on stock markets. In order to raise money to run their businesses, corporations issue stock. The two primary stock categories are common and preferred.
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What determines the price of goods in a free enterprise system?
When an economy uses free enterprise or the free market, prices, goods, and services are set by the market rather than by the government. Government regulation of businesses and services is absent.
In the mercantile system, the government decides on the economic policies to enforce the nation's growth. In a free market when the market controls itself, free business and supply and demand are not about governmental control. In contrast to economics, representative democracy is a type of governance.
Price in a market economy, where businesses are free to enter and leave, is decided by the supply and demand for products and services. In this situation, the government serves as a regulator rather than a direct participant in the market, and it is responsible for preserving the conditions necessary for businesses to grow and compete on the market on the basis of pricing. Consumers profit as a result. The government makes some economic decisions to benefit the economy, such as making sure there is no agreement, but production decisions are left entirely up to the firms, free from government interference.
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Which items represent examples of Adam Smith’s "invisible hand" at work?
Correct Answer(s) 1.) An auto manufacturer uses imported leather for the seats in its vehicles. 2.) A tailor who makes suits for clients by hand buys his own suits off the rack.
Incorrect Answer(s) 1.) A cafe owner discards expired food, to avoid a fine from the health department. 2.) A gas station owner closes on certain days of the year, for religious reasons.
1.) An auto manufacturer uses imported leather for the seats in its vehicles. 2.) A tailor who makes suits for clients by hand buys his own suits off the rack represents examples of Adam Smith’s "invisible hand" at work.
What does Invisible hand mean?
Adam Smith developed the metaphor of the invisible hand in his book The Wealth of Nations (1776). It refers to the unseen forces of the free market that move resources and goods from where they are in surplus to where they are in deficit. It is the idea that people, acting in their own self-interest, will act in ways that benefit the economy as a whole.
What is a Free market ?
A free market is an economic system in which the prices of goods and services are determined by the unrestricted interaction between buyers and sellers, in which the laws and forces of supply and demand are free from any intervention by a government, price-setting monopoly, or other authority. It is a market characterized by a spontaneous and unregulated ordering of economic activities. It is a market system in which the prices of goods and services are determined by the open market and by consumers. In a free market economy, competition and supply and demand set prices and determine who gets the goods and services produced.
Therfore the correct option is A.1.) An auto manufacturer uses imported leather for the seats in its vehicles. 2.) A tailor who makes suits for clients by hand buys his own suits off the rack.
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Which of the following is currently a negative factor for foreign investment in Russia?
Select one:
a. Few Russians have access to the Internet due to heavy regulation.
b. Russian consumers have little interest in online shopping.
c. Russian consumer markets are saturated, offering few opportunities for goods from U.S. companies to sell well.
d. Russia is known for corruption, creating ethical dilemmas for firms.
e. The Russian population is poorly educated.
currently a negative factor for foreign investment in Russia is corruption, creating ethical dilemmas for firms.so option is d.
A foreign investment is what?An investment in the form of a controlling ownership in a company, in real estate, or in productive assets like factories made in one nation by a company located in another is known as a foreign direct investment. Owning assets in one country by a resident of another country is known as foreign direct investment (FDI). Foreign direct investments (FDIs) are long-term purchases of physical assets like factories, toll highways, and bridges in other nations. Financial institutions that trade equity holdings in foreign corporations on the stock exchange are examples of FDIs.
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Enterprise Rent-A-Car closely ties customer service to employee success. With a tracking system called the Enterprise Service Quality Index (ESQi), the company routinely follows up with customers by phone to determine their level of satisfaction with the company. Only completely satisfied customers count toward an employee ESQi score, which is used to measure employee's potential for promotion. Enterprise closes provider _____ by using marketing research.
Enterprise closes provider soft by using marketing research.
A unit of economic system or activity: a project or operation that is particularly challenging, complex, or dangerous. Particularly: a business organization.: a planned, organized action. The primary economic activity among these people is agriculture.
The Enterprise Service Quality Index (ESQI) is a technique that measures results by using a questionnaire that makes it simple to gather data rapidly. The survey emphasizes responses from the top box. Customers who choose to remain close to the business will typically provide free, beneficial marketing for Enterprise.
A legal entity that has the authority to conduct commerce on its own, such as the ability to sign contracts, own property, amass debts, and open bank accounts, is said to have an enterprise. A business can be incorporated, quasi-incorporated, a non-profit organization, or unincorporated.
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________ are stocks and bonds representing secured or asset-based claims by investors against issuers.
C. Private placements are stocks and bonds representing secured or asset-based claims by investors against issuers.
A select number of buyers are only offered and sold firm shares through a private placement. Banks, pension funds, mutual funds, insurance firms, and extremely affluent investors are frequently the buyers. Under the Securities and Exchange Act of 1933, private placements in the United States are directly governed by SEC regulations.
______ are stocks and bonds representing secured or asset-based claims by investors against issuers.
A. Commodities
B. Securities
C. Private placements
D. IPOs
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Which of the following would customers need to present at the time of purchase to get money taken off the purchase price of the item?
A- Refund Checks
B- Sales Receipts
C- Discount Coupons
D- Rebate Certificates
Answer:
Sales Coupon. They save you money
TRUE OR FALSE : for consideration to have "legally sufficient value," it must consist of goods or money.
This statement is true, for consideration to have legally sufficient value, it must consist of goods or money, or a promise to do something in return for the act or promise of another.
This means that the consideration must be of value to both parties, and must be capable of being exchanged for something of real value. Additionally, the consideration must be considered to have value in the eyes of the law, and not be something that is illegal or against public policy. If the consideration is deemed to be insufficient, the agreement will be found to be void or voidable.
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Pool Manufacturing manufactures parts for one type of pool. The managerial accountant provided the following data for April: Pool Manufacturing Manufacturing Report for April Number of parts produced 40,000 parts Standard variable manufacturing overhead rate $35 per machine hour Standard hours required per part 0.10 machine hours Actual machine hours 3,250 machine hours Actual variable manufacturing overhead costs $104,000 What is the variable manufacturing overhead efficiency variance in April
Actual manufacturing variable overhead is $102,000. and The variance in variable costs is $178,000
Here 40,000 parts were made in total.
$35 per machine hour is the standard variable manufacturing overhead rate.
Each standard part requires 0.20 machine hours.
3,250 machine hours were really used.
Actual manufacturing variable overhead expenses equal $102,000.
40000 components produced in an average hour equals 0.2 x 40000.
= 8000 hours
35 8000 is the standard variable manufacturing overhead.
= $280,000
The real variable manufacturing overhead expenses for the production of the pool pieces in April were $102,000.
Actual manufacturing variable cost less standard manufacturing variable cost equals variable cost variation.
102000 minus 280000 is the variable cost with variance.
= -178,000
The variance in variable cost is $-178,000.
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Correct Question:
Pool Manufacturing manufactures parts for one type of pool. The managerial accountant provided the following data for April: Pool Manufacturing. Manufacturing Report for April Number of parts produced 40,000 parts Standard variable manufacturing overhead rate$35 per machine hour Standard hours required per part 0.20 machine hours Actual machine hours 3,250 machine hours Actual variable manufacturing overhead costs $102,000. What are the actual variable manufacturing overhead costs in April associated with the manufacturing the pool parts? The actual costs in April associated with the manufacturing the pool parts = $102,000.The costs are given to you in the information in the problem.
Sam files a suit against Ranchland Corporation. Ranchland believes that even if Sam's statement of the facts is true, according to the law Ranchland is not liable. Ranchland should Group of answer choices issue a summary judgment. file a motion to dismiss. ask for a deposition. seek an admission of the truth of the matter relating to the trial. g
Living in San Diego, California, are married couple Andrea and Sam. Soon after being married, they buy a house together.
To avoid wasting resources on a matter they view as frivolous, a party will file a motion to dismiss when they believe it lacks a legal foundation, or when they do not believe that what they did justifies a court case. When Non-products asserts that they did nothing illegal in this situation, they are basically filing a petition to dismiss. Moho avoid having to pay to defend the case, they would prefer if the courts simply dismissed the matter. Andrea receives her father's ranch property two years later. Regarding ownership, the house is regarded as communal property, but the ranch is not because it was inherited and is therefore thought to be under absolute possession. Ownership is the status or fact of having exclusive rights and control over property, which can be an item, a piece of land or other real estate, or intellectual property.
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Collusive outcome versus Nash equilibrium Consider a remote town in which two restaurants, All-You-Can-Eat Cafe and GoodGrub Diner, operate in a duopoly. Both restaurants disregard health and safety regulations, but they continue to have customers because they are the only restaurants within 80 miles of town. Both restaurants know that if they clean up, they will attract more customers, but this also means that they will have to pay workers to do the cleaning. If neither restaurant cleans, each will earn $12,000; alternatively, if they both hire workers to clean, each will earn only $9,000. However, if one cleans and the other doesn't, more customers will choose the cleaner restaurant; the cleaner restaurant will make $16,000, and the other restaurant will make only $4,000. Complete the following payoff matrix using the previous information. (Note: All-You-Can-Eat Cafe and GoodGrub Diner are both profit-maximizing firms,)If All-You-Can-Eat Cafe and GoodGrub Diner decide to collude, the outcome of this game is as follows: All-You-Can-Eat Cafe and GoodGrub Diner . If both restaurants decide to cheat and behave noncooperatively, the outcome reflecting the unique Nash equilibrium of this game is as follows: All- You-Can-Eat Cafe , and GoodGrub Diner .
Here is the payoff matrix for the situation described:
Strategy All-You-Can-Eat Cafe GoodGrub Diner
Not clean - clean $,4000 $16,000
Clean - clean $9,000 $9,000
Not clean - not clean $12,000 $12,000
What is the difference between Nash equilibrium and collusion theory using payoff matrix?Nash equilibrium is a state in which all players in a game have chosen their strategy optimally, taking into account the strategies chosen by the other players. Collusion refers to a situation in which two or more players in a game, often competitors, work together to achieve a common goal that is not in the best interest of the other players or society. In this payoff matrix, the rows represent the strategy of All-You-Can-Eat Cafe and the columns represent the strategy of GoodGrub Diner. The numbers in the matrix represent the profit (payoff) for each restaurant corresponding to the combination of strategies chosen. The first row represents the scenario where All-You-Can-Eat Cafe cleans and GoodGrub Diner doesn't. In this scenario, All-You-Can-Eat Cafe earns $16,000 and GoodGrub Diner earns $4,000. The second row represents the scenario where both restaurants choose to clean up. In this scenario, both All-You-Can-Eat Cafe and GoodGrub Diner earn $9,000 each. The third row represents the scenario where both restaurants choose not to clean up. In this scenario, both All-You-Can-Eat Cafe and GoodGrub Diner earn $12,000 each. As we can see, the Nash equilibrium is represented by the third row of the matrix, where both All-You-Can-Eat Cafe and GoodGrub Diner earns $12,000 each
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Jacob just signed a lease for his brokerage firm. The lease agreement includes taxes as part of the base rent. What kind of lease did he sign?
The type of lease that Jacob just signed is a Gross Lease. A gross lease is when the landlord agrees to pay all expenses associated with the property, such as taxes, insurance and maintenance.
In exchange, the tenant agrees to pay an agreed rent each month to cover all these expenses. This type of lease is attractive to tenants because it provides consistent and predictable rent payments over the term of the lease. It is also attractive to landlords as it provides them with a set amount of income each month regardless of the expenses associated with the property. All in all, Gross Lease is an attractive option for both landlords and tenants.
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What type of type of resource biotic and abiotic and renewable and non-renewable resources are?
Biotic resources are living or once-living organisms, such as plants, animals, and microorganisms.
What is Biotic?Biotic refers to any living organism or part of an organism. This includes plants, animals, fungi, and microorganisms. Biotic components form the basis of all ecosystems and are essential for the maintenance of life on Earth. Biotic organisms interact with each other and with the physical environment, forming complex networks of energy and nutrients. These networks form food webs, in which organisms consume and are consumed by other organisms, while also providing a range of services to the environment, such as nutrient cycling and climate regulation.
Abiotic resources are non-living resources, such as air, water, and minerals. Renewable resources are resources that can be replenished naturally, such as solar energy, wind energy, and water. Non-renewable resources are resources that cannot be replenished, such as fossil fuels and minerals.
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1. Assess the liquidity of the following assets: plant, unlisted securities, listed securities, head office building located in the centre of a large city, ships and aircraft, commercial paper, raw materials inventories, work-in-progress inventories.
2. What is your view of a company which has seen a huge increase in sales due to a significant drop in prices and a strong volume effect?
3. Is financial expense included in cash flow from operating activities?
4. Provide several examples illustrating the difference between cash receipts and revenues, cash expenses and costs.
5. Is the permanent part of working capital liquid?
The ability of a corporation to convert assets into cash or to get cash—through a loan or cash in the bank—to meet its short-term liabilities or obligations is known as liquidity.
1. What is liquidity of assets?When referring to an asset or security, liquidity refers to how quickly or easily it can be turned into ready money without influencing its market value. Cash alone is the most liquid of all the assets.
Liquidity describes how simple it is to convert an asset into cash without suffering a significant loss in value.
Making investing decisions can benefit from your understanding of liquidity.
Different functions can be served by liquid and nonliquid assets: You can use liquid assets to pay for regular bills and unforeseen crises. Nonliquid assets may be the best choice for long-term investments because they are difficult to convert to cash.
2 .What would you normally expect to be the impact on sales volume from price increase or decrease?Simply put, a price decrease will probably result in more sales or customers. On the other hand, a price increase results in less product being purchased, which means you are losing sales.
According to the law of demand, for almost all things, demand decreases as price rises . In other words, if prices are raised, sales will decrease. Higher prices can, however, also translate into greater profits.
3. Is financial expense included in cash flow from operating activities?Investment income and expense are not included in cash flow from operational activities or long-term capital expenditures.
The amount of additional cash coming into or leaving a company's operations is indicated by its net cash flow from operational activities. This covers any adjustments to non-cash items as well as any changes to net income (sales less any expenses, such as cost of goods sold, depreciation, and taxes, among others).
Cash flows come in three different forms: those from investment, those from financing, and those from operating activities. The first section of a company's cash flow statement is the cash flow from operating operations portion. It is used to describe how a corporation spends its capital at any one time and where it gets its money from continuous normal business operations like sales and manufacturing.
Usually present in the cash flow statement are:
The income statement's net income can be found there.modifications to net incomeWorking capital changes4. Examples illustrating the difference between cash receipts and revenues, cash expenses and costs.The meaning of Revenues
Revenues are sums that a business has made through commercial endeavours like selling goods or rendering services. Even though the trustworthy customers will pay the business 30 days later, revenues are reported on the income statement under the accrual method of accounting in the period in which they are earned.
Example for Revenues
A business sells $4,000 worth of items with credit terms of net 30 days on June 10 to one of its finest clients. A debit of $4,000 to Accounts Receivable and a credit of $4,000 to Sales Revenues will be recorded for the company's $4,000 in revenue on June 10.
The meaning of receipts
The cash that a business got is referred to as receipts.
Examples of Receipts
The following are some examples of receipts
Borrowing $1,000 in cash from the bank
Collecting $4,000 from a sale that was recorded one month earlier
Disposing of a company vehicle and receiving cash that is equal to the vehicle's book value
Examples of of both a receipt and a revenue
When a business sells something for $200 in cash (or renders services for $200 in cash), it has generated $200 in revenue and received $200 in payment.
When a business sells something for $200 in cash (or renders services for $200 in cash), it has generated $200 in revenue and received $200 in payment.
5. Is the permanent part of working capital liquid?The bare minimum of working capital, or the difference between current assets and current liabilities, required to operate a business even during the slowest time, is referred to as permanent working capital.
Permanent capital is an investment for an undefined period of time in an entity, such as a business or a trust
Simply dividing total current assets by total current liabilities yields the working capital ratio. It is also known as the current ratio due to this. It is a metric of liquidity, or the capacity of the company to make payments as they become due.
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What is the biggest difference between a bank and a credit union ?
The biggest difference between a bank and a credit union is ownership. Banks are owned by shareholders and are for-profit institutions, while credit unions are nonprofit and owned by their members.
Banks tend to offer a broader range of services than credit unions and may offer higher interest rates on loans and deposits. However, credit unions typically offer more competitive interest rates on loans and may have lower fees and more personalized services.
Banks are also typically for-profit and focus on generating revenue, whereas credit unions are nonprofit and focus on providing services to their members. Credit unions may also offer more favorable terms and interest rates on loans and other services compared to banks.
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